10 Nov 2008 07:00
ISLAND GAS RESOURCES PLC
('IGas' or 'the Company')
74% increase in Gas Initially In Place
IGas today is delighted to announce that an independent evaluation of its Gas Initially In Place (GIIP) resources has risen by 74 per cent since the Company's admission to AIM in December 2007, from 893 billion cubic feet (bcf) to 1,554 bcf.
These numbers represent the risk* weighted net mid case estimate. The evaluation was undertaken by Equipoise Solutions Limited and follows the announcement on 29th May 2008 that IGas, along with its partner Nexen Exploration ("Nexen"), had been highly successful in the 13th onshore oil and gas licensing round with offers for seven blocks under three Petroleum Exploration and Development Licences (PEDLs). These new PEDLs have now been evaluated by Equipoise along with two previously un-evaluated areas leading to a significant increase in GIIP.
The full terms of the Equipoise report can be found on the Company's website (www.igasplc.com), and are, in summary:
| December 2007 (bcf) | November 2008 (bcf) | Change (%) | |
| Unrisked | |||
| Net Low Case | 465 | 844 | 82% |
| Net Mid Case | 1,132 | 1,794 | 58% |
| Net High Case | 4,274 | 5,814 | 36% |
| Risk Weighted* Net Mid Case | 893 | 1,554 | 74% |
\* Takes account of risk factors related to the potential of coals being absent or falling outside the cut off ranges used for GIIP
Andrew Austin, IGas CEO said: "This is clearly excellent news and underlines the value of the extra assets we were able to win as part of the 13th round. The worldwide potential of coal bed methane (CBM), or coal seam gas as it is known in Australia, is vast and this is now being evidenced by an increasing interest in these assets around the world. It represents a source of relatively clean energy which is increasingly playing a role in supplementing gas from conventional resources. The scale of CBM as an asset class is reflected in the huge growth in M&A activity and values globally, particularly in Australia.
"We are continuing with our work in conjunction with reserves auditors DeGolyer and McNaugton to gather data and production experience to allow a proportion of GIIP to be classified as 'recoverable resource', and we expect to update the market in January 2009."
For further information please contact:
| Island Gas | Tel: +44 (0)20 7993 9901 |
| Andrew Austin Chief Executive Officer | |
| Gavin Anderson & Company | Tel: +44 (0)20 7554 1400 |
| Ken Cronin | |
| Kate Hill | |
| Brewin Dolphin Investment Banking | Tel: +44 (0)141 314 8213 |
| Mark Brady | |
| Neil McDonald | |
Notes to Editors: